Publicly listed offshore marine service company Bourbon Corp has filed a request for reorganisation proceedings with the Commercial Court of Marseille
The move follows a series of letters sent to Bourbon on 18 July 2019 in which China’s ICBC Leasing expressed its intention to demand payment of all outstanding rental payments up to 2026 as part of the guarantee provided to contracting companies, currently in arrears.
Bourbon Corp subsequently filed a request for ’sauvegarde’ or safeguard procedure with the Commercial Court of Marseille. However, the court rejected the request, citing that the guarantees activated by ICBC Leasing were proof that Bourbon Corp was insolvent as of 24 July 2019.
Bourbon says the reorganisation proceedings will only concern the holding company Bourbon Corp and not the operating units, which will continue their normal operations and continue to meet the needs of customers.
The reorganisation proceedings are a collective procedure that freezes current liabilities for up to 18 months to allow the debtor to present a viable plan for the continuation of its activities through the reorganisation of its debt, which may be spread over a maximum period of 10 years.
Bourbon Corp’s aim is to preserve the group’s operating activities in order to actively participate in what it calls an “emerging recovery of a profoundly changing market”.
The listing of all securities issued by publicly traded Bourbon Corp will resume on 26 July at market opening. As OSJ reported previously, trading in the stock had been halted while its listing had been suspended.
Bourbon Corp’s three units are Bourbon Marine & Logistics, Bourbon Mobility and Bourbon Subsea Services. The group companies have a fleet totalling 483 OSVs, crewboats and specialised vessels.